4 You are provided with the following information for Lahi Inc. fro the month en

Question

4 You are provided with the following information for Lahi Inc. fro the month ended October 31, 2015. Lahi used the perpetual inventory method Units Unit Cost/Selling Price Description Date $ 25 01-Oct 09-Oct 11-Oct 17-Oct 22-Oct 25-Oct 29-Oct Beginning Inventory Purchase Sale Purchase Sale Purchase Sale 60 120 100 70 60 80 150 26 40 27 40 28 40 1 Calculate the Ending Inventory. Cost of Goods Sold and Gross Profit under FIFO 2 Calculate the Ending Inventory. Cost of Goods Sold and Gross Profit under LIFO 3 Calculate the Ending Inventory.Cost of Goods Sold and Gross Profit under Weighted Average Required

Explanation / Answer

Answer. Calculation of No. of Unit Sold Date Explanation Units Unit Cost Total 11-Oct Sales                 100                    40            4,000 22-Oct Sales                   60                    40            2,400 29-Oct Sales                 150                    40            6,000 Total                 310          12,400 Answer 1. FIFO - Perpetual Inventory Date Purchases Cost of Goods Sold Balance Unit Cost Total Unit Cost Total Unit Cost Total 1-Oct               60         25.00          1,500 9-Oct                      120             26.00              3,120               60         25.00          1,500            120         26.00          3,120            180          4,620 11-Oct                  60                   25.00              1,500               80         26.00          2,080                  40                   26.00              1,040                100              2,540 17-Oct                         70             27.00              1,890               80         26.00          2,080               70         27.00          1,890            150          3,970 22-Oct                  60                   26.00              1,560               20         26.00             520               70         27.00          1,890               90          2,410 25-Oct                         80             28.00              2,240               20         26.00             520               70         27.00          1,890               80         28.00          2,240            170          4,650 29-Oct                  20                   26.00                  520               20         28.00             560                  70                   27.00              1,890                  60                   28.00              1,680                150              4,090 Total                      270              7,250                310              8,190 Sales     12,400.00 Cost of Goods Sold       8,190.00 Gross Profit       4,210.00 Answer 2. LIFO - Perpetual Inventory Date Purchases Cost of Goods Sold Balance Unit Cost Total Unit Cost Total Unit Cost Total 1-Oct               60         25.00          1,500 9-Oct                      120             26.00              3,120               60         25.00          1,500            120         26.00          3,120            180          4,620 11-Oct                100                   26.00              2,600               60         25.00          1,500               20         26.00             520               80          2,020 17-Oct                         70             27.00              1,890               60         25.00          1,500               20         26.00             520               70         27.00          1,890            150          3,910 22-Oct                  60                   27.00              1,620               60         25.00          1,500               20         26.00             520               10         27.00             270               90          2,290 25-Oct                         80             28.00              2,240               60         25.00          1,500               20         26.00             520               10         27.00             270               80         28.00          2,240            170          4,530 29-Oct                  80                   28.00              2,240               20         25.00             500                  10                   27.00                  270                  20                   26.00                  520                  40                   25.00              1,000                150              4,030 Total                      270              7,250                310              8,250 Sales     12,400.00 Cost of Goods Sold       8,250.00 Gross Profit       4,150.00 Answer 3. Weighted Average - Perpetual Inventory0 Date Purchases Cost of Goods Sold Balance Unit Cost Total Unit Cost Total Unit Cost Total 1-Oct               60         25.00          1,500 9-Oct                      120             26.00              3,120               60         25.00          1,500            120         26.00          3,120            180         25.67          4,620 11-Oct                100                   25.67              2,567               80         25.67          2,053 17-Oct                         70             27.00              1,890               80         25.67          2,053               70         27.00          1,890            150         26.29          3,943 22-Oct                  60                   26.29              1,577               90         26.29          2,366 25-Oct                         80             28.00              2,240               90         26.29          2,366               80         28.00          2,240            170         27.09          4,606 29-Oct                150                   27.09              4,064               20         27.09             542 Total                      270              7,250                310              8,208 Sales           12,400 Cost of Goods Sold             8,208 Gross Profit             4,192

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